New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-09-04
STOCKS GO UP WITH A BOUND
EFFECTS OF THE BIG BALTIMORE AND
OHIO LOAN.

GerECIe Of THE BIG BALTIMORE AND
OHIO LOAN
BURDEN LIFTED FROM WALL srREEr-rALK
ABOUT THE TELEGRAPH sITUATION-THK
ARTHUR KILL BRIDGE TO BE
COMPLETED.
The stock market responded promptly to ths
omciai announcement that the practical control
Of the BALTIMORE and Ohio Railroad had bcen
placed in the hands Of powerful syndicate,
whose large interests In other directions made
the change an assurance of peace In railroad and
telegraph matters. The excitement at the OPEN
ing Of business at the Stock Exchange was great,
and in several groups the difference in the price
Of the same stock were wide. The advances in
the stocks most affected by the negotiations were
from to about per cent bet
ter and Reading. which was first
In point Of activity, quickly rose nearly
8 per cent. Western Union was another centre
OF interest, but it advanced more slowly, al
though it held the improvement to the close.
The business was the largest since the Saturday
half-holday law went into effect, and in the
two hours the transactions were much larger
Than on many full days recently. More than q
han OF the business was done in the first half
hour when the excitement reached its height.
The virtual reorganization of the Baltimore and
Ohio Railroad was admitted to be settlement
OF the telegraph war and guarantee of D ace
tctween the trunk line railroads
| There were no new developments yesterday
Members of the syndicate were not perceptibly
disturbed by the claims made by retalners OF
Henry s. Ives Co. that President Robert Gar
lett could not make the agreement. The diff
Guilty which these persons perceive is too slight
to be noticed. The bankrupt estate of Ives q
Co. may have q claim against Mr.. Garrett, but it
has none against the railroad company. The
agreement OF the syndicate is with the com any,
and the distinction is an important one Assignee
Cromwell, Of Ives s. Co., said yesterday that he
could not say what form OF suit he might bring
against Mr. Garrett, whether for damages or
explicit performance Of contract.
1T has been suggested lately,n Mr.. Cromwell
added, that Henry s. Ives issued securities of
the Cincinnati, Hamilton and Dayton, and then
made them wOrthl IS by his management. Mr..
Garrett sold his road to Ives and now depreciates
| its value by putting what is virtually new
mortgage on it. / do not that there is much
diffeIcnce in the operations
! While the change Of control of the Baltimore
and Ohio Railroad will throw its telegraph lines
into the hands of the Western Union Company,
it is by no means certain that the telegraph and
cable war will be settled at once. The recent
negotiations between Mr.. Gouh and Mr.. Mackay
were not brought to a successful conclusion, and,
while they may be resumed later on the very cs-
tablshment Of harmonious relations between tho
| Baltimore and Ohio and the Western Union tele-
graph companies may result again in policy
Of mastery inactivity" on the part OF the West
ern Union. None of the cable companies are pay
ing expenses and the conflict is too fierce TO be
continued long,
The building of the bridge across the Arthur
Kill will not be interrupted by the recent devel-
opments. The Baltimore and Ohio Railroad guar
anteed s2500,000 second mortgage bonds OF the
4 De- 49,.
sequence secured control of that company. The
bonds have been sold and part Of the proceeds
has been spent in tlc purchase OF water front
property for terminal facilities. The bridge Is
| under contract to be completed before July i.
The Staten Island termiual will he used, how
ever, chiefly as freight station, and will not be
reserved to the exclusive use of the Baltimore
and Ohio, but will be open to the Pennsylvania
and Reading roads.
The boom in stocks caused intense excitement
in the Consolidated Stock and Petroleum En-
change and knocked OUT four concerns:
NJ J. Tracy g. Co., 1heopos Steele. L. L.. Tap
scott and G. L. Taylor. The two latter are ex-
ected to resume. The heaviest la' ilities are
supposed to be those Of the Tracy ia lure. The
differences Of the firm amount to about $4,000.
Jay Gould did not come to tic city yesterday,
and his opinion of the Drcxel transaction could
not be obtained. George ]. Gould was at tho
Western Union Telegraph Company Bull ling.
and he said to TRIBUNE reporter: I'VE are
pleased with the transaction greatly. think it
will he splendid thing for the whole country,
and the stock market shows how it's Importance
is appreciated. Why, some OF the stocks, hear
are up 10 per cent. You see. Mr.. Garrett was
fighting nearly every one. the express, the rail
road and telegraph interests. That belli-
gercnt policy is changed, and the high character
of the gentlemen who will influence the Bald-
more and Ohi0s future course is guarantee that
its policy will be conservative and able. This
will have not only temporary, but perma-
| nent influence of improvement. | think you will
| find that all conservative people 'of course, |
don't mean the tears who are interested in de-
pressing values) regard the transaction as ons
that will exert a great berctit on the situation"
"What about the telegraph? Have you re-
ceved proposition for the sale of the Balh-
more and Ohio Telegraph, as reported?'
mot that know of. The telegraph situation
is unchanged"
But it's only a question of time when you
will scoop 'em n?"
"I don't know about that" replied Mr. Gould,
iaughingly. But, far rs ! know. telegraph
matters unchanged. We are doing large
business, the largest in the history OF the COM
pany. The Manhattan Company is also showing
a constant gain i'm earnings. | do not believe
that the money market will cause any trouble
this fall Rates may rulc at TO 6 per cent,
hut any high figures will bring bonds to the
Treasury for redemption The position Of tho
| Treasury is sort Of regulator of the money
market, and the small offerings Of tonds last week
simply proved that there was no needs OF funds"
| A. B. Chandler, president OF the Postal 1ele-
graph Company, said "All I know about the
transaction is what the newspapers have printed,
and by them l that there has been condi-
tional contract made, which may involve other
conditional contracts Personally, j hope that
the arrangements will be carried out. i have
not believed in these low telegraph rates. The
Baltimore and Ohio has been doing almost every
thing except trying to make money out OF tho
telegraph business, and il this policy is to be
changed shall rejoice at it. There are no ncgo-
tiations now pending regarding the Postal TeIe-
graph Company and we are not affected by the
conditional agreements. Perhaps they may fail
as other attempts to improve the situation have
failed, but I personally would be glad to see
them successful. I t.ink that Mr. Gould muse
have misunderstood Mr.. Maekay when he said
that the latter told him he had to pay $1,000